I know LIRC works on a Raspberry Pi, however, I want to know if LIRC will work with Google's Android Things. If not, I want to know is there is anyway to communicate with Infrared sensors and decode the infrared signal.
Unfortunately seems not: there is no IrDA section in SDK Pripherial IO and max frequency of GPIO lines does not allow implement it via "bitbang" mode. But You can use Android Things board UART and IrDA protocol stack controllers like mcp2155 as in that project. Also that notes may be useful. When support of USB IrDA devices will be implemented in Android Things or the source code of Android Things becomes available, then you can use USB-IrDA dongles like that.